UK foreign secretary Liz Truss on Monday was accused of prioritising “aid for trade” as she unveiled a new international development strategy aimed at challenging the influence of “malign actors” in low- and middle-income countries.
The strategy, which follows the decision in 2020 to cut UK foreign aid from 0.7 to 0.5 per cent of gross domestic product, will “rebalance” the aid budget with a shift towards funding country and bilateral programmes rather than multilateral organisations such as the UN.
“Malign actors treat economics and development as a means of control, using patronage, investment and debt as a form of economic coercion and political power,” Truss said. “We won’t mirror their malign tactics, but we will match them in our resolve to provide an alternative.”
While the strategy does not mention China specifically, the country has come under increased scrutiny over its Belt and Road Initiative, which has provided funding for infrastructure projects in Africa and Asia but been criticised for saddling lower income countries with debt.
The foreign, commonwealth and development office said that the new strategy would provide “honest and reliable” financing enabling low and middle income countries to grow their economies sustainably without being burdened by “unsustainable debt with strings attached”.
However, leading charities and aid bodies say the UK government is prioritising geopolitics over long-term development goals.
Stephanie Draper, CEO at Bond, an organisation that represents more than 400 NGOs, argued that while the strategy contained “some positive elements” it was largely driven by “short-term political and economic interests”.
“It’s worrying that ‘aid for trade’ is at the heart of this strategy,” she said, adding that the UK had “missed a golden opportunity to properly rethink its role on the world stage”.
Others warned that the strategy could prioritise the Indo-Pacific to the detriment of countries in Africa.
Sam Nadel, Oxfam’s head of government relations said: “This strategy prioritises aid for trade and the financialisation of development. It is clearly motivated more by tackling China than tackling poverty.”
“A key test of this strategy will be whether it equips the UK to address urgent crises in places like east Africa where 28mn people are facing severe hunger,” he added.
The FCDO said that as part of the strategy, the department would restore the bilateral budget to support women and girls with an approach focused on “education, empowerment and ending violence”. Meanwhile, levels of humanitarian funding will be kept to £3bn over the next three years.
In a written statement, Truss said the government would “sustain” its commitment to the continent of Africa as well as ensuring the delivery of development programmes in the Indo-Pacific region.
Other measures include reducing “red tape and excessive bureaucracy” and granting ambassadors and High Commissioners with more powers to boost the efficient delivery of aid.
The FCDO also outlined in the report its commitment to restore aid spending 0.7 per cent of GDP once the “fiscal situation allows”.
Preet Gill, Labour shadow cabinet minister for International Development, argued that without increased funding the strategy was “barely worth the paper it is written on.”
She added: “If this government was serious about helping the world’s poorest, it would start by returning to 0.7 per cent immediately, not in the distant future.”
